Investment Pitches

Pitch Summary:
Digi International (DGII) is capitalizing on the expansion of IoT and AI-driven connectivity. The firm’s focus on subscription-based solutions has boosted recurring revenue from 4% to 27% since 2019, expanding margins and visibility. With mission-critical communication and edge-device applications, DGII is well positioned for secular growth.

BSD Analysis:
Digi is a solid IoT connectivity and networking platform company with recurring revenue growing faster than its hardware base. Margins are expanding as software and services take a larger share of the mix. The company is executing well, but investors still treat it like a low-margin hardware vendor. That misunderstanding creates the opportunity. IoT demand continues rising, and Digi’s products sit in mission-critical industrial workflows. With continued margin expansion, the multiple has room to grow. An underappreciated IoT compounder.

Pitch Summary:
Provident Financial Services (PFS) continues to integrate its transformative acquisition of Lakeland Bancorp, managing ~$25B in assets. The bank’s diversified deposit base, clean credit, and improving margins support consistent ROA >1%. Strong loan growth pipelines and cost synergies from consolidation drive EPS expansion potential.

BSD Analysis:
Provident is a conservative regional bank with a strong deposit base and tight credit risk management. The valuation reflects generic regional-bank fear, not Provident’s solid fundamentals. Loan growth is modest but consistent, and credit losses remain low. Integration discipline has been strong in past acquisitions. The bank isn’t sexy — but it’s safe, predictable, and well-run. Upside comes from simple normalization of sentiment in regional banks. A defensive financial at a discounted price.

Pitch Summary:
Worthington Enterprises (WOR), spun off from Worthington Industries in 2023, is transforming into a focused, asset-light manufacturing platform. It targets 6–8% annual sales growth and 24% EBITDA margins through automation, product innovation, and M&A. Management’s initiatives in IoT-enabled products and reshoring trends enhance visibility for multi-year growth.

BSD Analysis:
Worthington’s post-spin structure gives it a sharper focus on building products, consumer cylinders, and sustainable mobility — a mix with better margins and long-term tailwinds. Execution has improved as the company sheds its steel-processing legacy. Cash generation is solid, and capital allocation is disciplined. Yet the stock trades at a discount because investors haven’t adjusted to the cleaner portfolio. This is now a lightweight industrial with real growth levers. If margins continue to improve, WOR rerates. A surprisingly compelling transformation story.

Pitch Summary:
Modine’s liquid cooling solutions are benefiting from exponential growth in AI and data center infrastructure. Its systems enable efficient heat management for high-density computing environments, making it a key supplier in the AI hardware value chain. The firm continues to execute well under its transformation plan, improving margins and profitability.

BSD Analysis:
Modine has reinvented itself from a stodgy thermal management supplier into an electrification and data-center cooling growth story. Margins are expanding rapidly as the portfolio shifts toward higher-value, high-growth end markets. Execution has been phenomenal, and the market is only starting to price in the transformation. Industrial investors still treat Modine like a cyclically exposed auto supplier — completely outdated. Cash flow is strong, and the runway is long. MOD is now one of the best mid-cap industrial upgrades in the market. A clean, high-momentum compounder.

Pitch Summary:
Uranium Energy Corp (UEC) outperformed as investor sentiment rallied behind the nuclear energy renaissance and U.S. policy pivots favoring domestic uranium supply. Tight global supply and favorable legislation, including bans on Russian imports, have driven uranium prices higher. UEC’s U.S.-based in-situ recovery assets and upcoming refining subsidiary provide strategic leverage to policy and price tailwinds.

BSD Analysis:
UEC remains a high-torque bet on U.S. uranium independence with ISR assets primed for rapid restart as supply tightens. Its physical uranium holdings bolster intrinsic value and give it flexibility in pricing cycles. Critics knock its cost structure — fair — but geopolitics now matter more than marginal cost curves. Nuclear demand is rising, and Western supply is structurally constrained. The stock is volatile by design. If uranium stays in deficit, UEC becomes a major beneficiary. A pure-play uranium lever with geopolitical tailwinds.

Pitch Summary:
American Vanguard (AVD) has been pressured by weak ag commodity cycles and regulation, but management’s cost-cutting and efficiency initiatives signal a turnaround. The firm hired a new CEO to streamline operations, improve margins, and re-focus on core growth segments. With a diversified product base across crop protection and pest control, AVD stands to benefit from global ag recovery trends.

BSD Analysis:
AVD sits at the intersection of crop protection, specialty chemicals, and precision ag, but recent operational stumbles have obscured its long-term potential. Inventory normalization and margin recovery are underway, but investors remain skeptical. The portfolio is diversified and defensible, and demand is stable despite ag-cycle noise. Management has been tightening cost controls and focusing on higher-margin segments. The stock trades like a structurally impaired chemical company — it isn’t. If margins lift back to historical norms, there’s significant upside. A cyclical ag-recovery play with underappreciated resilience.

Pitch Summary:
Allot (ALLT) provides network intelligence and cybersecurity services via its SECaaS (Allot Secure 360) and network analytics platforms. Its solutions are deployed across over 500 service providers globally and over one billion connected users. Following a turnaround year in 2024, Allot returned to profitability with strong free cash flow and a mix shift toward recurring subscription revenue, now representing 20% of total sales. With its customer base of telecom providers, Allot can distribute enterprise-grade cybersecurity seamlessly to end users.

BSD Analysis:
Allot sells cybersecurity and network-intelligence solutions, but revenue volatility and inconsistent execution have crushed investor confidence. The technology is strong, but management has struggled to deliver predictable growth. Telco spending cycles are slow, making adoption lumpy. The balance sheet is okay, but losses need to narrow fast. Allot trades at distressed levels despite having legitimate IP. If execution improves, the rebound could be meaningful. High risk, but not without strategic value.

Pitch Summary:
Avidia Bancorp (AVBC) recently completed its mutual-to-stock IPO at 58% of tangible book value, positioning it as a deep-value play in a stable Northeastern market. The bank operates 10 branches with $2.9 billion in assets and a growing merchant services platform serving over 17,000 small businesses. Insider ownership exceeds 25%, and management projects EPS to rise from $0.09 in FY25 to $1.11 in FY26 as scale efficiencies and payments growth accelerate.

BSD Analysis:
Avidia is a well-run community bank with conservative underwriting and a strong deposit franchise, giving it stability even in a choppy rate environment. Growth is modest but steady, and credit quality remains excellent. The bank benefits from disciplined cost control and a diversified loan book. Yet it trades at a discount typical of small regional banks despite better fundamentals. Balance sheet risk is low, and earnings visibility is solid. Not a high-octane story, but one of predictable compounding. A quiet, high-quality regional bank.

Pitch Summary:
Wheaton Precious Metals (WPM) is a top Avenue position, offering diversified exposure across gold and silver. The firm earns royalty and streaming income from multiple mines and benefits from a 27-year production life, plus an additional 37 years of inferred reserves. Silver represents 39% of revenue, supported by industrial demand from solar and AI data centers.

BSD Analysis:
Wheaton’s mix of gold-silver royalties provides stability with industrial upside. High-margin streaming contracts, long reserve duration, and inflation resilience make it a defensive compounder. Silver’s growing role in energy transition and data center demand reinforces secular support.

Pitch Summary:
Delcath Systems (DCTH) is a commercial-stage oncology company focused on liver-directed cancer therapies. Its proprietary Hepzato Kit delivers high-dose chemotherapy directly to the liver while minimizing systemic exposure, allowing for targeted treatment of metastatic cancers that primarily affect the liver. The therapy is approved for ocular melanoma with liver metastases, with ongoing trials such as CHOPIN exploring first-line use. Despite recent volatility from slower site activations and Medicaid mix, management remains on track for rollout, with CHOPIN data expected in October as a key catalyst.

BSD Analysis:
Delcath is a high-risk med-tech story with a niche oncology platform that has shown promising clinical results but requires commercial execution the company hasn’t yet proven. The TAM is meaningful, but adoption will depend heavily on reimbursement and physician education. Cash burn is aggressive, keeping dilution risk high. Still, the technology addresses a real unmet need. The stock trades like the company has no path forward — a typical microcap biotech overreaction. If early commercial traction appears, sentiment could flip quickly. A binary setup with potentially explosive upside.

Pitch Summary:
Uranium Royalty Corp (UROY) was our top contributor, as uranium prices strengthened and nuclear power gained momentum as a clean energy solution for AI data centers. This positioning reflects our long-standing conviction that nuclear energy will play a critical role in meeting the exponential growth in power demands from artificial intelligence infrastructure. With spot uranium climbing into the high $70s–low $80s per pound range and term prices following higher, market sentiment strengthened around the long-term supply deficit and nuclear energy’s role in clean, reliable baseload generation.

BSD Analysis:
Uranium Royalty offers high-torque exposure to uranium prices with minimal operating risk, leveraging streams and royalties across key global projects. The business is structurally built for asymmetric upside: low cost base, huge optionality. As supply deficits widen, URC benefits without capex or execution headaches. Investors often ignore it because it lacks production, but that’s the whole point — clean leverage to price. The market treats it like a speculation, but the royalty model is inherently resilient. If uranium keeps rising, URC’s model shines. A pure uranium bull-market amplifier.

Pitch Summary:
Osisko Gold Royalties (OR) is a core Avenue holding. The firm owns royalties primarily in Canada, the U.S., and Australia—representing 80% of net asset value. Avenue highlights its strong jurisdictional exposure and steady cash flow from gold-linked royalty streams. The position was initiated in 2023 to capture gold’s long-term role as a hedge against rising sovereign debt and inflation.

BSD Analysis:
Osisko’s portfolio quality and cash-flow predictability make it a resilient gold play amid inflationary pressures. Rising central bank gold purchases and fiscal deficits strengthen the macro thesis. Trading at a discount to NAV with long-life assets, Osisko offers stable dividend growth and leverage to higher gold prices.

Pitch Summary:
Alibaba’s performance exemplifies our multi-year, value-based approach and the benefits of aligning with convex opportunities. As we have discussed in annual letters at length, Alibaba contains an asymmetric risk-reward profile with enormous business opportunities while maintaining a conservative balance sheet including large amounts of cash. The low price of BABA minimized risk of any long-term loss while offering enormous upside potential. We used our structured value methods to purchase BABA via the sale of cash-secured puts spanning 2022-2024. This allowed us to purchase our shares at attractive prices while receiving premiums for waiting. As shares were assigned to our portfolio, the price declined further, and we wrote short-dated covered calls to harvest tax losses while purchasing a basket of multi-year call options to maintain our long-term exposure. As the stock price doubled this year, the price of our call contracts surged, delivering the convex upside we were positioned to capture.

BSD Analysis:
Alibaba’s operational reset is working — Taobao is stabilizing, Cloud is improving, and cost discipline is reflating margins. Regulatory pressure has faded, yet the valuation still implies existential risk. Buybacks remain aggressive, fueled by strong free cash flow. China macro noise overshadows how much optionality sits inside Alibaba’s portfolio. The breakup uncertainty has lifted, leaving a cleaner, more focused organization. BABA is still one of the best risk-reward setups in global tech. A mega-cap value anomaly with catalysts in place.

Pitch Summary:
TAV operates 15 airports in 8 countries. Their guidance is 10–14% annual passenger growth across its airports, which we believe may continue for decades. TAV has high operating leverage: if passengers grow 12%, cash flow may grow at more than 2x that. We believe it is led by an exceptional management team and is very cheap compared to other global airport operators. 75% of its 2024 revenues were generated in or indexed to hard currencies (EUR and USD) or pegged to USD.

BSD Analysis:
TAV is riding a powerful recovery in global travel with traffic across its Turkish and international airports hitting new highs. The company’s long concession structure provides durable cash flow, and operating leverage is kicking in hard as passenger volumes rise. FX volatility and geopolitical noise keep investors nervous, but fundamentals are significantly stronger than the stock suggests. TAV’s asset base is strategic, well-located, and difficult to replicate. The earnings profile is improving faster than investor sentiment. Management is executing well on cost control and commercial expansion. As the cycle continues, TAV screens as one of the most mispriced airport operators globally.

Pitch Summary:
Based in India, Edelweiss is a holding company with various financial services subsidiaries that we believe have many tailwinds. Over the next 5–6 years, Edelweiss plans to spin off at least 4 different subsidiaries. We believe each will have a market cap exceeding $1 billion. The first spin-off will be their 100% owned alternative assets business, which is in-process. It is expected to be valued at $1–$1.5 billion at IPO.

BSD Analysis:
Edelweiss remains a complex financial-services story undergoing a multi-year cleanup, but the pieces are finally snapping into place. Asset quality is more stable, capital-light businesses are gaining share, and the alternatives platform is quietly gaining AUM. The restructuring has been messy, yet the core franchise remains intact and cash generation is improving. The market still prices Edelweiss like a distressed lender, ignoring the pivot toward fee-based income. Execution risk remains, but the valuation deeply discounts the turnaround. If the company strings together a few clean quarters, sentiment can shift fast. This is an Indian financial hybrid with real—but underappreciated—optionality.

Pitch Summary:
We have a position in U.S. offshore oil services. Offshore accounts for 1/3 of global oil and gas production and breaks even at levels far below fracking and other methods. Drillships are complex and expensive. There is no new supply in the pipeline. We believe supply-demand tightness can yield very high day rates for these ships. In our view, shares are trading at a huge discount to replacement value.

BSD Analysis:
Transocean is surfing one of the strongest offshore upcycles in a decade, with day rates climbing and utilization tightening for high-spec floaters. The company’s backlog provides multi-year visibility, something rare in energy services. Leverage is heavy, but rising cash flow and asset values are slowly taming the balance sheet. Offshore drilling is structurally undersupplied after years of underinvestment, and Transocean is positioned at the top of the market. Bears still anchor on the past-cycle wipeout, but this is a very different supply/demand setup. If management continues executing, earnings power explodes as long-term contracts reprice higher. RIG is a high-beta play on a sustained offshore renaissance.

Pitch Summary:
We believe a metallurgical coal miner or offshore oil driller that earns even single digit returns on the replacement cost of its assets can be a fantastic investment if its equity is purchased at a fraction of replacement cost. Roughly one-quarter of the Wagons Fund AUM is invested in three such businesses.

BSD Analysis:
Alpha Metallurgical is throwing off obscene amounts of free cash flow, supported by premium met-coal pricing and ruthless cost control. The company is using its cash machine to shrink the float aggressively, amplifying per-share value at a pace few cyclicals can match. Balance-sheet risk is minimal, and operations remain consistently strong even as global steel cycles wobble. The stock still trades at a single-digit multiple because investors reflexively hate coal, not because the fundamentals are weak. Yet Alpha sits on some of the best assets in North America with real pricing leverage. Global supply constraints keep the market tight, and AMR benefits disproportionately. High volatility, yes — but one of the most fundamentally mispriced commodity producers in the U.S.

Pitch Summary:
TSMC and other Asia-based semiconductor leaders were cited as major drivers of international market gains. The fund notes strong performance in Taiwan and South Korea equities, boosted by AI-related semiconductor demand and supply chain diversification. :contentReference[oaicite:9]{index=9}

BSD Analysis:
TSMC remains the backbone of global semiconductor manufacturing, holding over 50% market share in foundry capacity and 90% in advanced nodes. Its CoWoS and 3nm/2nm leadership make it indispensable to AI chip design from NVIDIA, AMD, and Apple. Despite geopolitical risks, diversified fabs in Japan and the U.S. mitigate concentration concerns. The company’s pricing power, robust backlog, and balance sheet strength underpin high-20s ROIC and durable margin expansion. As AI, automotive, and IoT silicon intensity rises, TSMC is positioned for multi-year growth with strategic optionality through onshoring incentives.

Pitch Summary:
In June 2025, Tesla launched a limited robotaxi pilot in Austin, Texas, deploying a small fleet of Model Y vehicles equipped with safety monitors in a geofenced area. The pilot marked the company’s first real-world test of its long-promised autonomous service. Tesla’s Full Self-Driving (FSD) software continues to evolve, and recent builds—such as version v14.1—incorporate end-to-end neural network components across city and highway driving in vehicles with the newest hardware. Regulatory agencies in Texas and California have approved additional limited pilots, signaling a measured but meaningful shift in official posture.

BSD Analysis:
Tesla’s volume engine sputtered, but its cost structure and vertical integration remain unmatched, giving it more room to survive price pressure than any other EV maker. Energy storage is quietly becoming a major margin lever, and autonomy/robotics remain long-dated but massive optionality. Bears obsess over short-term unit softness, but Tesla’s manufacturing advantage still sets the pace for the industry. Near-term sentiment is rough, but Tesla has reinvented itself before — and it’s still armed with a balance sheet and ecosystem competitors envy. The company is messy, volatile, and polarizing. But the long-term optionality is still enormous. TSLA is never a smooth ride — it’s a convex one.

Pitch Summary:
If AMD provides the brainpower of the AI build-out, Taiwan Semiconductor Manufacturing Company (TSMC) is its backbone. The company fabricates nearly all of the world’s most advanced chips for clients including Nvidia, AMD, and Apple. In mid-2025, TSMC’s revenue rose roughly 40% year-over-year to $10.7 billion in May, driven by surging demand for AI and high-performance computing.

BSD Analysis:
TSMC remains the irreplaceable heartbeat of global AI compute, with 3nm and advanced packaging demand pushing capacity constraints out multiple years. CoWoS is a bottleneck the entire industry depends on, and TSMC is the only shop scaling it at the pace AI requires. Margins are expanding again as utilization rises and pricing power strengthens. Geopolitical noise stays loud, but execution never wavers. Every sovereign AI plan ultimately runs through TSMC’s fabs. Investors still price in risk but rarely value the monopoly-like economics. This is one of the strongest long-duration compounders in global technology.